Tesla Model 3 and Model Y prices go up, and incentives are canceled for them

 

Autos - Tesla's recent price increases will be hugely annoying for California customers because they have made the automaker's affordable cars ineligible for the biggest discount on California electric cars. The California Clean Vehicle Rebates System (CVRP) confirmed that the Model 3 and Model Y would be excluded from a discount of up to $2,000 after the price increases applied to vehicles last week.

An update both from Tesla in the price and after CVRP's auto discounts were removed means that the Model 3 will now cost $46,990, up from the previous $44,990, and well over CVRP's $45,000 limit for cars to receive incentives. The Model Y will also start at $62,990,000 more than the previous price of $59,990, which puts it above the program's $60,000 limit for SUVs.

And for customers, the Model 3 is actually up $4,000 and the Model Y $5,000, since they'll pay the base price plus the $2,000 incentive value that was previously discounted.

A CVRP representative said the program has received numerous calls from Tesla customers concerned about the changes. The only piece of good news for them is that the software will calculate the discount based on the order date, not the delivery date. Thus, anyone who orders their car before March 15th will be eligible to get it with the discounts.

Tesla has not given an official reason to raise the base price of its cars, but it was one of a number of manufacturers to do so in response to rising prices for materials needed to make battery cells.